ISLAMABAD: Pakistan Trade deficit has touched highest level of its historyand serious concerns have been raised over the widening trade gap.
Trade deficit has widened 14 percent to $30.245 billion during the first10 months of the current fiscal year of 2017/18, official data revealed onThursday.
Trade deficit amounted to $26.436 billion in the July-April period of thelast fiscal year.Exports reached $19.207 billion in the July-April periodof the current fiscal year as against $16.895 billion in the correspondingperiod of the previous fiscal year, up 14 percent in dollar terms. Importsrose to $49.452 billion in the period under review as compared to $43.331billion a year earlier.
Secretary Commerce Younus Dagha bet that exports recovery would easepressure on trade balance. “We can only hope to contain the deficit withinmanageable limits,” Dagha said. “With CPEC (China-Pakistan EconomicCorridor) machinery coming in, the increased exports (19 percent in Apriland 14 percent overall) are good omen for the external sector.”
Commerce secretary said the increase of $2.3 billion in exports is expectedto be $2.7 billion by yearend, which “will reduce the need for foreignfinancing”. In April, trade deficit shrank six percent to $2.977 billionover the same month of the last fiscal year, demonstrating that the pace ofincreasing trade deficit slowed down.
Exports fetched $2.132 billion in April as against $1.798 billion in thesame month of the last fiscal year, registering an increase of 19 percent,the highest monthly growth in the recent past. Imports stood at $5.109billion in April as against $4.962 billion, registering a marginal increaseof three percent.
In April, exports, however, were down four percent from $2.231 billion inMarch. Imports also dropped three percent in April from $5.280 billion inthe previous month. Trade deficit in April decreased two percent in Aprilfrom $3.049 billion.
The official data showed that the policy intervention of government andState Bank of Pakistan in terms of rupee devaluation and tariff andnon-tariff barriers have started yielding positive results as exports arepicking up and imports slowing down.